Moving Abroad (US) With Work
Discussion
Hello,
Looking for some advice from others that have done it. I potentially have the chance to move to Baltimore with work. The job would be a title change to the next level but the role would be similar to what I do in the UK. Just more volume and different processes/complexities. This would be the development.
Currently both me and my wife work. We also have a 16 month old daughter in nursery. We are mid 30’s.
We own our home and have a lease car until the end of the year.
She would potentially stop working altogether or go part time. My work may potentially be able to offer her this part time role.
So my questions are:
- what uplift in salary would you all be looking for? How do you also take cost of living differences into account?
- what would you negotiate with your employer to support this (flights back to UK per annum, rented accommodation etc).
- what would you do with house and car?
- any other downsides?
Thanks in advance.
Looking for some advice from others that have done it. I potentially have the chance to move to Baltimore with work. The job would be a title change to the next level but the role would be similar to what I do in the UK. Just more volume and different processes/complexities. This would be the development.
Currently both me and my wife work. We also have a 16 month old daughter in nursery. We are mid 30’s.
We own our home and have a lease car until the end of the year.
She would potentially stop working altogether or go part time. My work may potentially be able to offer her this part time role.
So my questions are:
- what uplift in salary would you all be looking for? How do you also take cost of living differences into account?
- what would you negotiate with your employer to support this (flights back to UK per annum, rented accommodation etc).
- what would you do with house and car?
- any other downsides?
Thanks in advance.
Will you be taking an ex-pat package, or will you be transferring as a local employee?
There is a significant impact to taxation etc, so you really need the support of the business to ensure everything is done correctly otherwise you’ll end up in a whole heap of woe
Are you keeping your UK T&C or will you be transferring to local T&C? What are the company’s policies for repatriation in the event of redundancy? Will there be a guaranteed role for you in the UK / elsewhere at the end of the term? What if you don’t like it / can’t be successful / your OH hates it over there?
Sorry to bring up a bunch of negatives but these are really things that need to be considered and are normally taken into account within an ex pat package.
There is a significant impact to taxation etc, so you really need the support of the business to ensure everything is done correctly otherwise you’ll end up in a whole heap of woe
Are you keeping your UK T&C or will you be transferring to local T&C? What are the company’s policies for repatriation in the event of redundancy? Will there be a guaranteed role for you in the UK / elsewhere at the end of the term? What if you don’t like it / can’t be successful / your OH hates it over there?
Sorry to bring up a bunch of negatives but these are really things that need to be considered and are normally taken into account within an ex pat package.
Edited by schmalex on Tuesday 14th January 19:20
I have quite a few friends who have done this (early 2000s), what I have learnt is that tax is different in each state so you need to check exactly how it works in your state.
Cost of living can vary a lot. However most big cities are expensive. Property is staggeringly expensive in some places. There is a reason nurses, teachers, police officers earn $100k in some parts of the USA...
Don't trust what your employer is saying, just do some research yourself.
If wifey does not go with you ask them to throw in return flights home every 3 months at the very least.
Check how long it takes to open a bank account in the US - you will almost certainly need one. Make sure your company will help with this as from what I have heard it can be a difficult process and can take a while.
Medical - what does the company offer? Make sure its up to the job even if its a short term move.
Holidays? A lot of US companies don't give anywhere near the same paid holiday as UK companies are required by law to give 28 days.
401k? If you are going to spend any significant time in the US and you build a 401k then be aware this can be highly complex to move / manage from the UK.
Basic living costs again like food, utilities, clothing etc can be expensive. In the sticks its cheap(ish) but in the big cities expect to pay a premium.
The good news is out of the 5 people who I know who have gone only one has moved on the rest now live in the US.
Also, remember the UK tax system might still be an issue to you will need to (may need to) declare non residence etc. Speak to an accountant who is familiar with people who work in the USA.
Remember things like your state pension, WPP etc will not accrue so that's all stuff I would expect employer to include in your package.
Cost of living can vary a lot. However most big cities are expensive. Property is staggeringly expensive in some places. There is a reason nurses, teachers, police officers earn $100k in some parts of the USA...
Don't trust what your employer is saying, just do some research yourself.
If wifey does not go with you ask them to throw in return flights home every 3 months at the very least.
Check how long it takes to open a bank account in the US - you will almost certainly need one. Make sure your company will help with this as from what I have heard it can be a difficult process and can take a while.
Medical - what does the company offer? Make sure its up to the job even if its a short term move.
Holidays? A lot of US companies don't give anywhere near the same paid holiday as UK companies are required by law to give 28 days.
401k? If you are going to spend any significant time in the US and you build a 401k then be aware this can be highly complex to move / manage from the UK.
Basic living costs again like food, utilities, clothing etc can be expensive. In the sticks its cheap(ish) but in the big cities expect to pay a premium.
The good news is out of the 5 people who I know who have gone only one has moved on the rest now live in the US.
Also, remember the UK tax system might still be an issue to you will need to (may need to) declare non residence etc. Speak to an accountant who is familiar with people who work in the USA.
Remember things like your state pension, WPP etc will not accrue so that's all stuff I would expect employer to include in your package.
Diplomatico said:
Hello,
Looking for some advice from others that have done it. I potentially have the chance to move to Baltimore with work. The job would be a title change to the next level but the role would be similar to what I do in the UK. Just more volume and different processes/complexities. This would be the development.
Currently both me and my wife work. We also have a 16 month old daughter in nursery. We are mid 30’s.
We own our home and have a lease car until the end of the year.
She would potentially stop working altogether or go part time. My work may potentially be able to offer her this part time role.
So my questions are:
- what uplift in salary would you all be looking for? How do you also take cost of living differences into account?
- what would you negotiate with your employer to support this (flights back to UK per annum, rented accommodation etc).
- what would you do with house and car?
- any other downsides?
Thanks in advance.
Whatever the hurdles, do it if you can. Working and living somewhere else can be exceptionally rewarding, even if you come back later.Looking for some advice from others that have done it. I potentially have the chance to move to Baltimore with work. The job would be a title change to the next level but the role would be similar to what I do in the UK. Just more volume and different processes/complexities. This would be the development.
Currently both me and my wife work. We also have a 16 month old daughter in nursery. We are mid 30’s.
We own our home and have a lease car until the end of the year.
She would potentially stop working altogether or go part time. My work may potentially be able to offer her this part time role.
So my questions are:
- what uplift in salary would you all be looking for? How do you also take cost of living differences into account?
- what would you negotiate with your employer to support this (flights back to UK per annum, rented accommodation etc).
- what would you do with house and car?
- any other downsides?
Thanks in advance.
Practicalities:
The company should pay for all relocation costs. If they're a decent company, they should also make a contribution to rent for a short while until you find a place to buy. But once you're established, then there's no obligation on them to fund any flights back to the UK (unless for business reasons).
Your salary will be on-par with the local staff at the same level as you. This may be proportionally more than you are on at the moment, it may be less. It's up to you to determine if it's worth it and where you'll be in comparison to your life in the UK. As a very general rule of thumb, the salary will be similar but cost of living is generally a little less. It's been a while since I looked but it used to be for houses, you can expect a lot lot more for your money.
If you can bare it (emotionally and financially), I would recommend you going over there on your own for a few months to get a feel for it before committing your family to the move.
And if you do go, I'd retain your UK property and rent it out for a while. I had three close friends move to the US in the 20s with the intention of at some point returning to the UK but when they did the sums, they couldn't make it stack up. Only one managed it (and then promptly moved to Hungary!). So if you have in the back of your mind that you may some day return to UK, having a property here will make that more doable.
HTH - good luck.
Visa is a huge one. If it's not one where you can transition to a green card then you won't be staying indefinitely. Could be a problem if you move your whole life and then decide you like it. Matt Harper on here is a visa expert.
All the questions above, if your employer is not hiring someone to help you answer them, your salary requirements should increase to cover it all. It's kind of a big deal and there will be significant costs you don't account for. How about replacing most of your electrical goods for a starter ?!
All the questions above, if your employer is not hiring someone to help you answer them, your salary requirements should increase to cover it all. It's kind of a big deal and there will be significant costs you don't account for. How about replacing most of your electrical goods for a starter ?!
Diplomatico said:
Hello,
Looking for some advice from others that have done it. I potentially have the chance to move to Baltimore with work. The job would be a title change to the next level but the role would be similar to what I do in the UK. Just more volume and different processes/complexities. This would be the development.
Currently both me and my wife work. We also have a 16 month old daughter in nursery. We are mid 30’s.
We own our home and have a lease car until the end of the year.
She would potentially stop working altogether or go part time. My work may potentially be able to offer her this part time role.
So my questions are:
- what uplift in salary would you all be looking for? How do you also take cost of living differences into account?
- what would you negotiate with your employer to support this (flights back to UK per annum, rented accommodation etc).
- what would you do with house and car?
- any other downsides?
Thanks in advance.
Many companies will have very clearly defined policies for this which have little wiggle room.Looking for some advice from others that have done it. I potentially have the chance to move to Baltimore with work. The job would be a title change to the next level but the role would be similar to what I do in the UK. Just more volume and different processes/complexities. This would be the development.
Currently both me and my wife work. We also have a 16 month old daughter in nursery. We are mid 30’s.
We own our home and have a lease car until the end of the year.
She would potentially stop working altogether or go part time. My work may potentially be able to offer her this part time role.
So my questions are:
- what uplift in salary would you all be looking for? How do you also take cost of living differences into account?
- what would you negotiate with your employer to support this (flights back to UK per annum, rented accommodation etc).
- what would you do with house and car?
- any other downsides?
Thanks in advance.
The biggest question will be is this expected to be a permanent move or an assignment with an expectation that you would return to your company in the UK at some point. The 2 scenarios would have an impact on your package.
If it's the former I would expect that you would simply be paid the equivalent US salary for you position, with a relocation allowance.
If it's the latter then it would depend on the duration of assignment. But typically it would include a nominal uplift (5-10%), cost of living allowance, accommodation, flights (only once a year if family accompany you), car rental.
Things to watch
- family medical coverage, make sure you get full coverage for the whole family.
- think carefully about renting you property. Is the return worth the hassle. Don't sell it, until you know you will never return.
- get your employer to cover the cost of an accountant/tax specialist.
- check how pensions will be covered.
- unless you are moving for good consider how you will be protected for currency fluctuations
- is your UK position protected once you return?
Edited by GT03ROB on Wednesday 15th January 05:50
Edited by GT03ROB on Wednesday 15th January 05:52
Always be careful on headline $ numbers. Investigate tax levels, local costs, daycare. Healthcare can be a big number if your company isn't paying. Some food is more expensive, some less. Two cars will probably be a must - and you will have no credit score in order to lease - ditto a mortgage. You can build one quickly but it is not overnight.
The balance between what is paid for will fundamentally depend on if this is a secondment (say two years) where a role in the UK should be preserved (or a role at that grade)... or a relocation. Depending on the state, they may incur additional tax liabilities on a secondment.
If your company doesn't do it regularly then tred extra careful.
The balance between what is paid for will fundamentally depend on if this is a secondment (say two years) where a role in the UK should be preserved (or a role at that grade)... or a relocation. Depending on the state, they may incur additional tax liabilities on a secondment.
If your company doesn't do it regularly then tred extra careful.
Lots of practical advice above that shouldn't be ignored. I have a couple of additional points:
1. DO IT - obviously you need to do all of the due diligence, but this is an opportunity that you shouldn't overlook. I know several people who have done it over the years, and not one of them has come back to the UK.
2. Look at Columbia as a place to live - it's like a US version of Milton Keynes, but much much nicer.
1. DO IT - obviously you need to do all of the due diligence, but this is an opportunity that you shouldn't overlook. I know several people who have done it over the years, and not one of them has come back to the UK.
2. Look at Columbia as a place to live - it's like a US version of Milton Keynes, but much much nicer.
Diplomatico said:
Some top notch advice - thanks!
Ultimately the first question is whether this is permanent or a secondment.
I would be located in Baltimore. I need to convince the wife that this is a good place to live.
Lots of people seem to live here and work in D.C. as housing is cheaper.
I can’t offer any advice on moving but Baltimore is famous for being one of the most dangerous cities in the US. 30 times the murder rate of London!Ultimately the first question is whether this is permanent or a secondment.
I would be located in Baltimore. I need to convince the wife that this is a good place to live.
Lots of people seem to live here and work in D.C. as housing is cheaper.
Some good advice above, and some not so good!
The one thing I would suggest is that even if you are contemplating making the move, ensure all adults have Amex cards in the UK and use them a bit (pay off in full of course). As soon as you're issued your Social Security Number, you can have Amex transfer your UK product to a US product. This means you immediately start building your credit with a reputable company as opposed to having to beg someone like Capital One to give you a $500 limit (in exchange for $500 of your cash they hold for security).
The one thing I would suggest is that even if you are contemplating making the move, ensure all adults have Amex cards in the UK and use them a bit (pay off in full of course). As soon as you're issued your Social Security Number, you can have Amex transfer your UK product to a US product. This means you immediately start building your credit with a reputable company as opposed to having to beg someone like Capital One to give you a $500 limit (in exchange for $500 of your cash they hold for security).
Been there, done that
Try to retain your UK holiday allowance - negotiate hard on that
Full household relo both ways, whatever your reason for returning, flights both ways for all family plus a full container
Allowance to replace TV and white goods which won’t work in US
L1-A visa (your wife can then work on a dependent visa)
No visits to US until visa comes through (can have tax consequences)
Full tax equalisation service in the years you move in both directions - can cost you £4K+ otherwise
Fully expensed serviced apartment until you find a family rental (can take 2-3 months) and your container has arrived (6-8 weeks)
Hire care for 3 months
Healthcare, including optical and dental, with a decent HMO
Also
- get an Amex card before you go if you don’t have one. You’ll have zero credit history in the US and unable to borrow a cent for the first 2 years at normal rates (exception: US manufacturer car leases, they are desperate to shift tin)
- Move your bank account ASAP to a bank that has retail operations in both countries
- You’ll lose any insurance history and no-claims bonus you have, so forget about buying one of those cheap Dodge Challengers on day 1
- Aim to time the moves so that you get full benefit of tax allowances in both countries for the years you move, eg move UK to US around August/September depending on taxable salary
Try to retain your UK holiday allowance - negotiate hard on that
Full household relo both ways, whatever your reason for returning, flights both ways for all family plus a full container
Allowance to replace TV and white goods which won’t work in US
L1-A visa (your wife can then work on a dependent visa)
No visits to US until visa comes through (can have tax consequences)
Full tax equalisation service in the years you move in both directions - can cost you £4K+ otherwise
Fully expensed serviced apartment until you find a family rental (can take 2-3 months) and your container has arrived (6-8 weeks)
Hire care for 3 months
Healthcare, including optical and dental, with a decent HMO
Also
- get an Amex card before you go if you don’t have one. You’ll have zero credit history in the US and unable to borrow a cent for the first 2 years at normal rates (exception: US manufacturer car leases, they are desperate to shift tin)
- Move your bank account ASAP to a bank that has retail operations in both countries
- You’ll lose any insurance history and no-claims bonus you have, so forget about buying one of those cheap Dodge Challengers on day 1
- Aim to time the moves so that you get full benefit of tax allowances in both countries for the years you move, eg move UK to US around August/September depending on taxable salary
Edited by mikef on Thursday 16th January 21:14
vaud said:
mikef said:
No visits to US until visa comes through (can have tax consequences)
Can also throw suspicions that you are working ahead of your visa...mikef said:
vaud said:
mikef said:
No visits to US until visa comes through (can have tax consequences)
Can also throw suspicions that you are working ahead of your visa...Fer said:
Push for a repatriation clause to get you, the family and any desired belongings home if they let you go.
Indeed, don't want to risk being without visa and jobless - as for an L1-A you would need to leave the country (it can't be transferred between sponsoring companies IIRC)I moved to Texas last year, there is some good advice above but for me the non-existent credit history has had the biggest financial impact. We pay $500 a month for car insurance for two cars, home insurance is high, deposits required for all utility companies, credit cards with low limits and if you want to finance car purchases you may struggle unless your company has some sort of agreement with a bank. We also found it was cheaper to buy a house rather than rent.
Having said the above i'm glad we made the move, only another year or two until we get a half decent credit score!
Having said the above i'm glad we made the move, only another year or two until we get a half decent credit score!
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